The National Cooperative Consumers' Federation of India (NCCF) reported on Saturday that it had resumed buying onion bulbs for a larger buffer stock, and in the previous four days had acquired 2,826 tonnes of the bulb directly from farmers at a cost of Rs 2,410 per quintal, primarily from Maharashtra.

The government enhanced the onion buffer stock target from 3 lakh tonnes to 5 lakh tonnes this year.

To prevent panic selling as a result of the implementation of an export curb to regulate local prices, two cooperatives, NCCF and NAFED, have been instructed to purchase 1 lakh tonnes each directly from farmers at a cost of Rs 2,410 per quintal.

In order to curb onion retail prices, which are now ranging from Rs 60 per kg in Delhi and other cities depending on quality, the two cooperatives are also removing the government's buffer stock of onions from the wholesale and retail markets.

According to NCCF Managing Director Anice Joseph Chandra, direct farmer purchases from the cooperative started on August 22 in both Maharashtra and Madhya Pradesh. In Maharashtra, 12–13 procurement centres have already been established, and more will follow demand.

"In the last four days, we purchased about 2,826 tonnes of onion mostly from Maharashtra. The target is to buy 1 lakh tonnes and we may procure more," she said.

NCCF is procuring onion directly from farmers at Rs 2410 per quintal, which is higher than the prevailing wholesale rate of Rs 1900-2000 per quintal, she added.

According to Joseph Chandra, NCCF is also selling the buffer stock of onions in 11 states and one union territory where prices are rising in an effort to increase domestic availability and reduce rising retail costs. To date, 6,450 tonnes of onions have been sold in the wholesale markets at the present mandi rates.

Delhi, Andhra Pradesh, Telangana, Odisha, Assam, Kerala, Tamil Nadu, Karnataka, Punjab, and West Bengal are among the 11 states and the union territory, she continued.

"We are retailing the onion buffer stock both through physical and e-auction mode to bring greater transparency. The first e-auction of onion was done on August 25 in Delhi-NCR and 36 tonnes were sold," Joseph Chandra said.

In the upcoming days, this will be repeated in two cities in Punjab, she said, adding that the cooperative is also attempting to sell onion in bulk through the NCDFI and Bhim portals.

On the retail front, NCCF reported that it has already begun selling onions in Hyderabad and Delhi-NCR on a small scale. This will be scaled up in the coming week.

"Onions are being sold at a subsidized rate of Rs 25/kg without quantitative restrictions," she added.

The government imposed a 40 percent export duty on onions, on August 19, to restrict outward shipments and boost local availability amid apprehension about the Kharif output.

Image source: Reuters